Print ISSN: 1738-3110 / Online ISSN 2093-7717 http://dx.doi.org/10.15722/jds.16.1.201801.7
The Effects of Consumer Value Perception of PB on Product Loyalty and Repurchase Intention *
Hoe-Chang Yang
**, Young-Ei Kim
***Received: December 10, 2017. Revised: January 10, 2018. Accepted: January 15, 2018
Abstract
Purpose - This study aimed to identify the impact of consumers’ perception of the value of discount store PB products on brand loyalty and repurchase intention and simultaneously check whether consumers showed a different position depending on gender difference and age.
Research design, data, and methodology - For data collection, total of 174 valid copies of questionnaire were obtained for analysis. And simple regression, multiple regression and hierarchical moderated regression analysis was conducted for hypothesis verification and implication
Results - It was found that functional, social and emotional value perceived by consumers had a positive impact on brand loyalty and repurchase intention. And it was found that consumers who were in a relatively lower age group were positive, in the relation between emotional value and repurchase intention only.
Conclusions – It was suggested that consumers accept discount store PB products positively overall. Therefore, discount stores must not only need to develop their strengths in various parts of PB product beyond consumer’s positive perception but also make efforts to raise the social awareness of the use of PB products. And they have to promote consumer decision making by concentrating on emotional factors take a different approach to consumers in a higher age group.
Keywords: Discount Store, PB(Private brand), Value, Brand Royalty, Repurchase Intention.
JEL Classifications: D30, M10, M11, M12, M31.
1. Introduction
In Korea, discount store was one of the business conditions growing constantly every year as a front-runner in distribution industry. However, with the recent explosive growth of online shopping malls and the high growth rate of general supermarkets as well as convenience stores as an offline store, the discount store’s market share dropped, which led to the fall in sales, thus causing difficult situations.
In the report on sales figures for the first half year of 2017
* This paper has been represented 2017 International Conference on Business and Economics(ICBE 2017). Reviewed by new discussion of two panelist and revised faithfully reflected by three anonymous reviews.
** First Author, Assistant Professor, Dept. of Distribution Management, Jangan University, Korea. E-mail: [email protected]
*** Corresponding Author, Professor, Dept. of Business Administration, Seoul Digital University, Seoul, Korea. Tel: +82-32-310-9718, E-mail: [email protected]
(by type of business) published by the Ministry of Trade, Industry, and Energy (MOTIE) as well, online sales increased by 25.1% and convenience store by 11.4%
compared with the previous year, whereas discount store by 0.0%, which suggested that there was no change in sales over last year (MOTIE, 2017). To survive in such intensifying competition, discount stores were concerned about brand equity as a critical source to increase corporate competitiveness. If the competition between companies becomes fierce, the functional differences of product or service between companies will decrease and subsequently price competition will become fierce and achieving differentiation among competing companies will become more difficult gradually and thus reinforcing brand equity will be considered as the most desirable strategy that companies can take(Ha & Park, 2008). Especially discount stores are launching various PB products focusing on distributor brand (Private Brand: PB), in order to not only secure new customers but also help boost sales by maintaining and managing the existing customers. However, convenience
stores repeating growth trends have recently been launching PB products like discount stores did and a considerable competition is expected, which is a big burden on discount stores.
A distributor brand, also called PB is a product that the distribution company devises independently and self-produces or consigns its production to a subcontractor and sells by putting a self-developed logo on it and contrasted with Manufacturer Brand (National Brand: NB) (Cho et al., 2012).
PB products are advantageous to consumers because they are sold at a lower price by 20-30% while keeping the same function and quality as NB products and also considered to be somewhat helpful for attaining price stability (Choi, 1998). PB market is more revitalized in times of depression when consumers’ purchasing power gets lower due to income reduction (Choi, 1998), and as it has fewer burden of paying advertising expenses and promotional administrative costs as differentiated factors (Cho et al., 2012) from the other distributors and can exclude retail margin because goods are sold exclusively via the applicable distribution company, it can be of considerable help to reinforcing distribution company’s competitiveness.
However, distributor’s strategy to expand PB products not only reduces small and medium-sized retailer and manufacturer’s operating profits but also have various problems including falling-off in quality due to pressure on supply of cheaper products as well as weakened reputation of the existing NB products, as a matter of fact.
This study notes that the discount stores that contributed to the development of distribution industry of Korea have been a tough time with the recent advent of online and offline distribution companies. Indeed, discount stores are regulated in various ways because a social and economic question was raised that it threatened traditional market and local businesses (Yang et al., 2013). In addition, it must not be neglected that discount stores contributed to the economic development of Korea, consumption life, and development of distribution industry. Therefore, this study aimed to identify the impact of consumer value perception on brand loyalty and repurchase intention about PB projects recently launched by discount stores. To this end, we sub-categorized consumer value into functional and social value and emotional value as sub-factors and identified the impact of consumer value perception of PB products on brand loyalty and repurchase intention as dependent variables in order to identify which parts in PB products ought to be more reinforced. In addition, it aimed to draw clues to marketing strategy of discount stores exercising a claim on PB products by identifying consumer’s gender and age from the relation as suggested above.
The findings from this study were expected to offer various clues to strategic selection for discount stores to overcome difficult situations with PB products and occupy differentiated competitive advantages. It was also expected that consumers would promote healthy spending if
consumers could analyze their value perception of PB products and if distributors could supply more convincing PB products.
2. Theoretical Background 2.1. Private Brand
The classification between PB and NB can be made(e.g., Choi et al., 2011; Kim et al., 2011), depending on under whose responsibility, among channel members products would be sold(Stern et al., 1989). Shapiro(1993) stated that PB was a brand sold at its own store only with distributor’s own trademark attached and thus had its unique concept differentiated from manufacturer brand (NB) that was advertised and distributed nationwide. Lewison(1997) maintained that PB was a concept contrasted with manufacturer brand that could be sold by any distributors and thus indicated product or service that distributors could not only own their rights on it but also explore markets and sell it. Lee and Bae(1996)’s comparison between PB and NB is presented in <Table 1> below.
<Table 1> PB vs. NB
Class. Private Brand National Brand
Operation • Distributor • Manufacturer For Sales • Consumers visiting a
retailer • Consumers nationwide Production
method
• Distributor’s direct production or original equipment
manufacturing(OEM)
• Manufacturer’s own production
Advantages
• Low price
• High return rate
• Distributor’s reinforced pricing power (The scope of distributor’s own price discount widened)
• Easy to sell because consumer’s brand awareness and brand loyalty is high
• Easy to manage quality
• Has less burden on handling stock
Disadvantages
• Has high burden on handling stock
• Has burden on procuring initial investment costs for product development
• Difficulty in managing quality
• Difficulty in selling products due to consumer’s low brand recognition level
• Low margin rate
• Has limits to price discount
As presented in <Table 1> above, PB can secure its competitiveness by selling products to consumers who visit a
store at a relatively lower price through distributor’s direct production or original equipment manufacturing (OEM). In addition, it can realize high return by reducing retail margin and operate various pricing strategies by giving the pricing power to the distributor. However, the initial investment costs for product development and distribution and burdens on stock are high and the quality control is difficult and consumers’ brand recognition is low, which makes it too difficult to enter the market. Hence, discount stores are promoting the supply of PB products to convenience stores having a strong relationship with them. E-Mart, for example switched ‘Withme,’ convenience store brand that it had operated so far to ‘emart24’ and sold ‘No Brand,’ emart’s main PB product intensively. As this phenomenon suggests that PB products can also be sold at discount stores and convenience stores that large companies are operating, it is expected that the competition among PB products can become much fiercer.
2.2. Consumer Value
Researches on value are made in various fields including business administration, psychology, sociology, and humanities and have provided various paradigms in different forms depending on situations by reflecting individual’s cognitive awareness structure with the social, cultural, and historical changes and many research findings are reported from various fields (e.g., Cho et al, 2014; Choi et al. 2014;
Lee et al., 2013; Lee & Yang, 2012; Song & Yang, 2012;
Yang et al., 2013; Yang et al., 2013; Yang & Ju, 2012;
Yang & Oh, 2015). Definitions on value made by some researchers can be presented as follows. Zeithaml(1988) defined perceived value as customer’s overall evaluation of product availability based on the perceptions of what was given vs. what I received. Holbrook(1994) defined interaction of consumer value with particular targets(e.g., product, service, person, store, things, ideas and events) as relative or situational preference characterizing consumer’s experience. Woodruff(1997) defined consumer value as perceived consumer’s evaluation and preference for product properties, performance and results arising from the efforts to achieve customer’s objective and goals in product-usage situations.
The concept of ‘value’ implies relatively various meanings and consumer value is a multidimensional construct reflecting empirical aspects as well as economic aspects of consumption(Babin et al., 1994; Mathwick et al., 2001;
Zeithaml, 1988). Therefore, consumer value is a variable used for accounting for various areas of consumer behavior and influences selection of goods(Zeithaml, 1988), purchase intention(Dodds & Monroe, 1985), and repurchase(Ravald &
Grönroos, 1996) and preceding studies on major concepts of consumer behavior such as quality and satisfaction have elucidated the relation with value(Baker & Crompton, 2000;
Oh & Park, 1997).
In this study, we used the multidimensional concepts of social value, functional value, and emotional value provided by Sweeney and Soutar(2001) as sub-factors of value.
According to these researchers, emotional value represents usefulness stemming from the feelings or emotional state coming from using a specific product. Social value means usefulness stemming from the ability of a specific product to improve social self concept. Functional value can be classified as value of price or performance. In the first place, the functional value of price means usefulness stemming from reducing the short-term and long-term costs perceived about the product by consumers and performance value is conceived as value manifested by usefulness stemming from the performance expected with perceived quality about the product by consumers. Therefore, emotional value will become higher if consumers get positive feelings about PB products; social value will become higher if PB products can give a favorable impression, e.g., by recalling their pride or strengthening their social status from the consumer perspective; and functional value will be perceived higher if they have ever satisfied with price or quality. In this respect, evaluating how consumers recognize the value of PB products will be helpful for providing information on complements, maintenance requirements, and reinforcements in discount stores’ supplying PB products.
2.3. Brand Royalty
Brand loyalty refers to the level of attachment or bonding that consumers will have about a specific brand. Therefore, if the brand loyalty is high, consumers tend to purchase the brand’s products continuously and repeatedly(Jacoby &
Chestnut, 1978; Song & Yang, 2012; Thomson et al., 2005;
Yang & Ju, 2012). Jacoby and Chestnut(1978) maintained that the specific conditions for brand loyalty to be are first, the brand’s being superior to the other brands based on the information that consumers secured and second, consumers’
having a good feeling toward the brand compared to the other brands(Ryu & Kwon, 2017). Brand loyalty was used for the first time in Copeland(1923) who named it as brand insistence. He defined brand insistence as a continuous attitude that a consumer strongly preferred a specific brand beyond the stage of recognition and preference(Copeland, 1923). Therefore, consumer’s extreme attitude toward a specific brand can have a positive impact on actual purchase behavior(Kim & Kim, 2009). On the other hand, Oliver(1999) defined brand loyalty as customers’ tending to repurchase the same or equal brand despite various marketing attempts to shift to the other brands, in a deep immersion state that they were trying to repurchase their preferred product or service or become loyal customers.
2.4. Repurchase Intention
Repurchase intention refers to the possibility to purchase
the same or equal product repeatedly later on, as a belief or will to purchase a specific product or service again among consumers based on their evaluations of their past experience with the product or service, for the purpose of maintaining a long-term relationship between enterprise and customer(Oliver, 1981). In addition, it can be the possibility to use the same service provider repeatedly even after the customer purchased a product and is thus closely related to such behaviors as actual purchase behavior and customer retention(Kim & Oh, 2002). Bitner(1990) stressed that customer’s satisfaction and dissatisfaction factor was the factor having the biggest impact on repurchase intention and such factors were not only influenced by the quality of product perceived by consumers but also had the direct causal relationship with repurchase.
Fishbein and Ajzen(1975) demonstrated that according to rational action theory, people expected the results of behavioral performance rationally when they tried to determine whether to perform a specific behavior or not and were more likely to perform the same behavior when they judged the results from performing the behavior as positive.
Therefore, as consumers’ perceptions of the value of PB will be formed by their past use experience, repurchase intention is very likely to be determined by the satisfied or dissatisfied experience with PB.
3. Research Model & Hypotheses
Value is a persistent belief that guides the behavior or judgment toward reaching the more ultimate aim, i.e., final state beyond a specific situation or short-term objective(Rokeach, 1969). In addition, value is one criterion to account for attitude or motive as a super ordinate concept of attitude(Dichter, 1985). Value is driven by a certain emotion(affection) and transferred to a motive that may cause a certain behavior or attitude(Hausel, 2008), and in terms of economics, defined as tangible and intangible gains obtained against the invested cost(Nilson, 1992;
Zeithmal, 1988).
This study adopted Sweeney and Soutar(2001)’s multidimensional approach reflecting practical and emotional aspects as well as economic utility in order to reflect consumer’s complex value structure properly. In other words, consumers seek to explore alternatives to meet their needs and desires the most, go through the process of comparing the cost paid vs. the utility obtained from it among the alternatives explored, and in this process, emotional, social, and functional values interact and select the most efficient alternative(Kang, 2017). Therefore, customers’ perceived value of discount store PB products that they had experienced is very likely to increase brand loyalty and repurchase intention, as suggested by the preceding studies(e.g., Cha & Jo, 2017; Lee et al., 2008). Thus the
following hypotheses can be set up.
<Hypothesis 1> Consumer value perception on PB will have a positive effect on brand royalty.
<Hypothesis 1-1> If consumers’ perception of functional value of PB is high, it will have a positive effect on brand royalty.
<Hypothesis 1-2> If consumers’ perception of social value of PB is high, it will have a positive effect on brand royalty.
<Hypothesis 1-3> If consumers’ perception of emotional value of PB is high, it will have a positive effect on brand royalty.
<Hypothesis 2> Consumer value perception on PB will have a positive effect on repurchase intention.
<Hypothesis 2-1> If consumers’ perception of functional value of PB is high, it will have a positive effect on repurchase intention.
<Hypothesis 2-2> If consumers’ perception of social value of PB is high, it will have a positive effect on repurchase intention.
<Hypothesis 2-3> If consumers’ perception of emotional value of PB is high, it will have a positive effect on repurchase intention.
Many researches on value evaluation(Handy & Katz, 1998; Okada & Hoch, 2004; Simons & Emanuele, 2007) have shown that there was a difference in value evaluation about money and time between men and women depending on gender difference. This suggests that many factors are interacting in a complex way, when consumers judge value and show a specific behavior or behavior intention.
Therefore, confirming that consumers can make a different evaluation or selection depending on gender difference or age implies that discount stores can classify customer groups and use each and different strategy appealing to the applicable PB product, especially about the part that shows a difference. The reason for dividing by the age of 40 is traditionally due to the distinction of middle age at around age 40 in a previous study (e.g., Craig, 1983; Tilker, 1975), and gender differences in consumption are also presented in various studies such as Lee(2008). Thus the following hypotheses can be set up.
<Hypothesis 3> Demographic characteristics(e.g., gender and age) will moderate the relationship between consumer value perception and brand royalty.
<Hypothesis 3-1> Demographic characteristics(e.g., gender and age) will moderate the relationship between functional value perception and brand royalty.
<Hypothesis 3-2> Demographic characteristics(e.g., gender
and age) will moderate the relationship between social value perception and brand royalty.
<Hypothesis 3-3> Demographic characteristics(e.g., gender and age) will moderate the relationship between emotional value perception and brand royalty.
<Hypothesis 4> Demographic characteristics(e.g., gender and age) will moderate the relationship between consumer value perception and brand royalty.
<Hypothesis 4-1> Demographic characteristics(e.g., gender and age) will moderate the relationship between functional value perception and repurchase intention.
<Hypothesis 4-2> Demographic characteristics(e.g., gender and age) will moderate the relationship between social value perception and repurchase intention.
<Hypothesis 4-3> Demographic characteristics(e.g., gender and age) will moderate the relationship between emotional value perception and repurchase intention.
<Figure 1> Research Model & Hypotheses
4. Empirical Analysis
4.1. Research investigation and measurement scale
For data collection, our survey was conducted in ordinary citizens living in Seoul and capital area for seven days from July. 1, 2017 by mailing our questionnaires directly and collecting them again and a total of 174 valid copies of questionnaire were obtained for analysis.The demographic characteristics of respondents are as follows. In the first place, there were 92 males (52.9%) and 82 females (47.1%), which showed that the number of males were a little more than that of females. In age, there were 79 individuals aged less than 39 years (45.4%) and 95
aged more than 40 years (54.6%). In occupation, there were 113 salaried workers (65.3%) who occupied the most percentage, followed by self-employed (19 individuals, 11.0%) and other (19, 11.0%). Consumer value was measured using Likert’s 5-point scale based on Sweeny and Soutar(2001), specifically about four questions concerning functional value, e.g., ‘The price of PB products is reasonable’, four questions concerning social value, e.g.,
‘Purchasing PB products can help to boost self-esteem’, and four questions concerning emotional value, e.g., ‘PB products provide pleasures.’ Brand loyalty was measured using Likert’s 5-point scale based on Yoo and Donthu(2001) and Washburn and Plank(2002), specifically about four questions, e.g., ‘I tend to insist on using PB products’ and repurchase intention was measured using Likert 5-point scale based on Sweeny and Soutar(2001), specifically about four questions, e.g., ‘I will purchase PB products next time, too.” Gender was dummy-coded as 1 for females using a discount store largely and 0 for males and age as 1 for individuals aged less than 39 years who felt relatively less burdened about using PB products and 0 for individuals aged more than 40 years, for analysis.
4.2. Reliability & Validity
As a result of confirming the reliability of each item on the variables, Cronbach’s α coefficient ranged from 0.840 to 0.911 and construct reliability ranged 0.853 to 0.912.
Average Variance Extracted(AVE) was 0.594 to 0.723, which means internal consistency and convergent validity were verified.
<Table 1> Reliability & Validity
Variables Item Cronbach's α Construct Reliability AVE
Functional Value 4 0.900 0.897 0.686
Social Value 4 0.911 0.894 0.678
Emotional Value 4 0.884 0.912 0.723
Brand Royalty 4 0.889 0.898 0.689
Repurchase Intention 4 0.840 0.853 0.594
4.3. Correlation Analysis
Correlation analysis was carried out to check the relation between variables and the directivity and verify the discrimination validity. As a result, it appeared that the gender difference between variables was not statistically significant, but age was positively (+) associated with other variables statistically significantly. In addition, as a result of comparing coefficient of determination, square value of coefficient of correlation vs. AVE, it appeared that AVE had a bigger value and thus the discrimination validity was obtained.
<Table 2> Results of Correlation Analysis
1 2 3 4 5 6 7
1. Gender_dummy -
2. Age-dummy .075 -
3. Functional Value .116 .199** (.686) 4. Social Value .100 .091 .647** (.678) 5. Emotional Value .097 .319** .689** .503** (.723) 6. brand Royalty .005 .259** .507** .442** .651** (.689) 7. Repurchase
Intention .136 .154* .490** .502** .534** .691** (.594) Mean 0.47 0.54 2.68 2.98 2.53 2.59 2.82 Standard Deviation 0.50 0.49 0.81 0.90 0.88 0.82 0.78 note) * p<.05, ** p<.01, AVE is marked in ( ).
4.4. Results of Hypothesis Test
For hypothesis testing, regression analysis was conducted after controlling gender and age and the results are as follows. First, there is statistically significant positive effect on the relationship between brand royalty and functional value (β=.486, p<.01), social value (β=.422, p<.01) and emotional value (β=.642, p<.01), respectively. Therefore,
<hypothesis 1-1>, <hypothesis 1-2>, and <hypothesis 1-3>
were all adopted. This result suggests that consumers feel positive about PB products overall.
To check which factor, among sub-factors of value that consumers perceive about brand loyalty has greater effect, multiple regression analysis was conducted. As a result, it was found that emotional value (β=.548, p<.01) only was positively (+) associated statistically significantly, but functional value (β=.031, p=.730) and social value (β=.145, p=.057) were not statistically significant. This can be interpreted that consumers accept discount store PB products positively, but the quality of PB products or the social benefits earned by using products are less effective.
Therefore, discount stores need to develop their strengths in various parts of PB product beyond the positive effect of
‘cost-effectiveness’ and establish a positive trend to strengthen its position socially by using PB products.
Also, there is statistically significant positive effect on the relationship between repurchase intention and functional value (β=.548, p<.01), social value (β=.477, p<.01) and emotional value (β=.515, p<.01), respectively. This result can also be interpreted that PB products secured their position at the level that they could be used continuously by consumers overall. Therefore, <hypothesis 2-1>, <hypothesis 2-2>, and <hypothesis 2-3> were all adopted.
To check which factor, among sub-factors of value that consumers perceive about repurchase intention has greater effect, multiple regression analysis was conducted. As a result, it was found that emotional value (β=.332, p<.01) and social value (β=.283, p<.05) were positively (+) associated
statistically significantly and functional value (β=.062, p=.526) was not statistically significant. This result can be interpreted that a specific PB product does not have a strong competitive power yet and the product having the same performance is likely to be changed to other enterprise’s PB product any time. Therefore, discount stores should try to take measures to benefit from reducing the perceived cost by consumers about PB products but also meet the expected result about PB products with perceived quality.
For testing the moderating effect of gender difference and age, interactive terms were constructed between dummy- coded gender difference (1 for female and 0 for male) and age (1 for less than 39 years and 0 for more than 40 years), respectively and sub-factors of value and then hierarchical moderated regression analysis was conducted.
As a results of hierarchical moderated regression analysis, interaction term of functional value×gender difference_dummy (β=.287, p=.245), interaction term of social value×gender difference_dummy(β=.220, p=.384), and interaction term of emotional value×gender difference_dummy(β=.282, p=.384) was not statistically significant on brand loyalty, respectively.
Meanwhile, interaction term of functional value×gender difference_dummy(β=.089, p=.722), interaction term of social value×gender difference_dummy(β=-.062, p=.798), and interaction term of emotional value×gender difference_dummy (β=.138, p=.517) was not statistically significant on repurchase intention, respectively. On other words, it was concluded that there is no gender difference between the value of PB product and brand royalty, and repurchase intention. Therefore, <hypothesis 3-1>, <hypothesis 3-2>, and <hypothesis 3-3> were all not adopted.
Analysis results according th age classification, interaction term of functional value×age_dummy(β=.069, p=.759), interaction term of social value×age_dummy(β=-.294, p=.206), and interaction term of emotional value×age_dummy((β=-.024, p=.890) was not statistically significant in brand loyalty, respectively. In the meanwhile, interaction term of functional value×age_dummy(β=.053, p=.817), interaction term of social value×age_dummy(β=-.011, p=.963) was not statistically significant on repurchase intention, However, interaction term of emotional value×age difference_dummy(β=.166, p<.05) was found to have a statistically significant negative effect on repurchase intention, respectively. On other words, it was concluded that there is no gender difference between the value of PB product and brand royalty, and repurchase intention. Therefore, <hypothesis 4-1>, <hypothesis 4-2> was not adopted, but <hypothesis 4-3> was only adopted.
5. Conclusion & Discussion 5.1. Summary
This study aimed to identify the impact of consumers’
perception of the value of discount store PB products on
brand loyalty and repurchase intention and simultaneously check whether consumers showed a different position depending on gender difference and age. Since discount stores like E-mart have recently supplied PB products to convenience stores as the group’s affiliated company, the competition among PB products became fiercer, and for discount stores unable to pull out of slump to strengthen their competitiveness, the role of PB products can only be anticipated.
As a result of hypothesis testing, the following conclusions could be drawn. First, it was found that functional value, social value and emotional value perceived by consumers had a positive impact on brand loyalty. Second, it was found that functional value, social value, and emotional value perceived by consumers had also a positive impact on repurchase intention. Third, as a result of verifying the moderating effect of gender difference and age, it was found that consumers who were in a relatively lower age group were positive, in the relation between emotional value and repurchase intention only.
5.2. Suggestions
As a result of hypothesis testing, the following suggestions could be drawn. The results that each of the values such as functional value, social value and emotional value perceived by consumers affects positively on brand loyalty suggest that consumers accept discount store PB products positively overall. However, the results from multiple regression analysis conducted to identify which factor, among sub-factors of value had greater effect on brand loyalty showed that consumers accepted PB products overall, but the quality of PB products or their satisfaction level with social benefits dropped. This suggested that discount stores must not only need to develop their strengths in various parts of PB product beyond consumer’s positive perception but also make efforts to raise the social awareness of the use of PB products. The results that each of the values such as functional value, social value and emotional value perceived by consumers affects positively on repurchase intention implies that consumers perceive discount store PB products at the level that they are willing to repurchase them. However, the results from multiple regression analysis conducted to identify which factor, among sub-factors of value perceived by consumers had greater effect on repurchase intention showed that emotional value and social value only had a positive impact statistically significantly and function value was not statistically significant. This result can expect that because relatively cheaper price and distributor’s pricing power, two strengths of PB product do not play a big role, the product having the same performance is likely to be changed to other enterprise’s PB product any time. Therefore, as mentioned above, discount stores should try to take measures to benefit from reducing the perceived cost by consumers
about PB products but also meet the expected result about PB products with perceived quality.
<Figure 2> Result of moderating effect of Age_dummy Results of moderating effect of age can be interpreted that PB products do not show a big differentiation at the general-purpose level yet and consumers in a relatively higher age group are able to not accept PB products positively. On the other hand, if we interpret the results shown in <Figure 2> in contrast with the preceding studies (e.g., Sheth et al., 1991; Westbrook & Oliver, 1991), it is seen that if consumers in a lower age group have a special feeling or emotion about PB products that they selected, their repurchase intention gets much higher than those in a higher age group. Therefore, it is suggested that discount stores can promote consumer decision making by concentrating on emotional factors such as symbol and image of PB product for consumers in a lower age group (Hagtvedt & Patrick, 2008) and take a different approach to consumers in a higher age group. It is worth attempting to find the marketing clues to consumers in a higher age group in further researches.
References
Babin, B. J., Darden, W. R., & Griffin, M. (1994). Work and/or fun: Measuring hedonic and utilitarian shopping value. Journal of Consumer Research, 20(4), 644-656.
Baker, D. A., & Crompton, J. L. (2000). Quality, satisfaction and behavioral intentions. Annals of Tourism Research, 27(3), 785-804.
Bitner, M. J. (1990). Evaluating service encounters: The effects of physical surroundings and employee responses. Journal of Marketing, 54(2), 69–82.
Cha, J. B., & Jo, M. N. (2017). The effects of perceived value and perceived risk on post-purchase satisfaction and repurchase intention of tour product: Focused on the social commerce tour
product. Journal of Tourism & Leisure Research, 29(1), 101-121.
Cho, H. J., Lee, S. C., & Ryu, S. M. (2012). A political proposal for the private brand activation. Journal of Distribution Research, 17(5), 113-128.
Cho. H. Y., Han, S. H., & Yang, H. C. (2014). The impact of traditional market properties and relationship quality on customer value: Approach from the viewpoint of the means-end chain theory. Journal of Distribution Science, 12(1), 13-19.
Choi, B. N., Lee, H. H., & Yang, H. C. (2014). Impacts of value inclination and self-expressive consuming propensity upon eco-friendly product purchasing intention. East Asian Journal of Business Management, 4(4), 39-49.
Choi, S. S., Kim, P. J., & Lee, S. Y. (2011). A Research on Private apparel Brand’s Product Strategy in Discounted Stores. Journal of Industrial Distribution
& Business, 2(2), 25-38.
Choi, E. S. (1998). Survey report: PB products sales situation and activation plan. Korean Consumer Agency, 1-24.
Copeland, M. T. (1923). Relation of consumer's buying habits to marketing methods. Harvard Business Review, 1, 282-289.
Craig, G. J. (1983). Human Development (2nd ed.). Reading, New York: Prentice-Hall.
Dichter, E. (1985). What’s in an image. The Journal of Consumer Marketing, 2(1), 75-81.
Dodds, W. B., Monroe, K. B., & Grewal, D. (1991). Effects of price, brand, and store information on buyers’
product evaluations. Journal of Marketing Research, 28(3), 307-319.
Fishbein, M., & Ajzen, I. (1975). Belief, attitude, intention and behavior: An introduction to theory and research. Reading, MA: Addison-Wesley.
Ha, D. H., & Park, E. J. (2008). Antecedents and consequences of brand evidence in the hotel industry: Focused on marketing communication and brand attitude. Advertising Research, 81, 329-355.
Hagtvedt, H., & Patrick, V. M. (2008). Art Infusion: The influence of visual art on the perception and evaluation of consumer products. Journal of Marketing Research, 45(3), 379-389.
Handy, F., & Katz, E. (1998). The wage differential between nonprofit institutions and corporations:
Getting more by paying less?. Journal of Comparative Economics, 26, 246-261.
Hausel, H. G. (2008). Brain view: Warum kunden kaufen.
(J. A. Bae, Trans.). Seoul: Heureum. (Original work published 2008)
Holbrook, M. B. (1994). The nature of customer value,
service quality: New directions in theory and practice. Thousand Oaks, CA: Sage Publications.
Jacoby, J., & Chestnut, R. W. (1978). Brand loyalty:
Measurement and management. New York: John Wiley and Sons, Inc.
Kang, J. H. (2017). Effect of the perceived value of premium dessert menus on purchase behavior and repurchase intention. International Journal of Tourism and Hospitality Research, 31(3), 207-220.
Kim, E. H., Kim. E. H., & Kim, M. J. (2011). The effect of distributor private brand product type on consumer attitude. The East Asian Journal of Business Management, 1(1), 13-20.
Kim, H. B., & Kim, N. E. (2009). The effect of e-service quality, perceived value and customer satisfaction on customer loyalty for online travel agencies.
Journal of Korea Service Management Society, 10(2), 251-276.
Kim, S. H., & Oh, S. H. (2002). The determinants of repurchase intentions in the service industry:
Customer value, customer satisfaction, switching costs, and attractiveness of alternatives. Korea Marketing Review, 17(2), 25-55.
Lee, C. K., Kim. H. M., & An, D. H. (2008). The effect of perceived value for Japanese tourists on their satisfaction and revisit intention to Korean tourism.
Journal of Tourism & Leisure Research, 20(4), 69-85.
Lee, S. G., & Bae, S. H. (1996). New Distribution Management. Seoul, Korea : Muyokpub.
Lee, S. S. (2008). Gender differences in impulse buying:
From the perspective of materialism and cognitive need for closure. The Korean Journal of Consumer and Advertising Psychology, 9(3), 475-495.
Lee, Y. C., & Yang, H. C. (2012). The effect of college students’ perceived choice attribute of traditional market and relationship quality: Moderating effects of consumption emotion and mediating effects of consumer’s value. Journal of Distribution Science, 10(1), 33-42.
Lee, Y. C., Yang, H. C., & Lim, S. J. (2013). The influence of price and customer value on long-term purchasing of e-commerce in industrial goods market: Mediating effects and moderating effects of perceived supplier trust. Advanced Institute of Convergence Information Technology(JNIT), 4(6), 1-8.
Lewison, D. M. (1997). Retailing (6th ed). Upper Saddle River, New Jersey: Prentice Hall.
Liu, X., & Kwon, Y. C. (2017). A study on the effects of brand globalness on brand trust and brand loyalty:
Focusing on the moderating effects of consumers’
cultural intelligence. Korea Trade Review, 42(4),
115-138.
Mathwick, C., Malhotra, N., & Rigdon, E. (2001).
Experiential value: Conceptualization, measurement and application in the catalog and internet shopping environment. Journal of Retailing, 77(1), 39-56.
MOTIE(Ministry of Trade, Industry and Energy) (2017).
Press release: Sales trend of distribution companies in June 2017 and The first half year.
Retrieved July 31, 2017 from
http://www.motie.go.kr/motie/ne/presse/press2
Nilson, T. H. (1992). Value-added marketing: Marketing management for superior results. Maidenhead:
McGraw-Hill.
Oh, H., & Parks, S. C. (1997). Customer satisfaction and service quality: A critical review of the literature and research implications for the hospitality industry. Hospitality Research Journal, 20(3), 35-64.
Okata, E. M., & Hoch, S. J. (2004). Spending time versus spending money. Journal of Consumer Research, 31(2), 313-323.
Oliver, R. L. (1981). Measurement and evaluation of satisfaction processes in retail settings. Journal of retailing, 57(3), 25-48.
Oliver, R. L. (1999). Whence consumer loyalty?. Journal of Marketing, 63, 33-44.
Ravald, A., & Grönroos, C. (1996). The value concept and relationship marketing. European Journal of Marketing, 30(2), 19-30.
Rokeach, M. (1973). The nature of human values. New York: The Free Press.
Shapiro, E. (1993). Price lure of private label products fails to hook many buyers of baby food, beer. Wall Street Journal, 13(May), 85-103.
Sheth, J. N., Newman, B. I., & Gross, B. L. (1991). Why we buy what we buy: A theory of consumption values. Journal of Business Research, 22(2), 159-170.
Simons, W. O., & Emanuele, R. (2007). Male-female giving differentials: Are women more altruistic?. Journal of Economic Studies, 34(6), 534-550.
Song, M. Y., & Yang, H. C. (2012). The effect of marketing communication and store loyalty in traditional markets: Focusing on shopping value and shopping experience. Journal of Distribution Science, 10(11), 71-77.
Stern, L. W., Ansary, A. I., & Brown, J. R. (1989).
Management in marketing channels. Englewood Cliffs, NJ: Prentice Hall.
Sweeney, J. C., & Soutar, G. N. (2001). Consumer perceived value: The development of a multiple
item scale. Journal of Retailing, 77(2), 203-220.
Thomson, D., MacInnis, J., & Park, C. W. (2005). The ties that bind: Measuring the strength of consumers’
attachments to brands. Journal of Consumer Psychology, 15(1), 77-91.
Tilker. H. A. (1975). Developmental psychology today (2nd Ed.). New York: Random House Inc.
Washburn, J. H., & Plank, R. E. (2002). Measuring brand equity: An evaluation of a consumer-based brand equity scale. Journal of Marketing Theory and Practice, 10(1), 46-62.
Westbrook, R. A., & Oliver, R. L. (1991). The dimensionality of consumption emotion patterns and consumer satisfaction. Journal of Consumer Research, 18(1), 84-91.
Woodruff, R. B. (1997). Customer value: The next source for competitive advantage. Journal of the Academy of Marketing Science, 25(2), 139-153.
Yang, H. C., Han, S. H., & Eom, K. (2013). Analysis of value pursuit discount store customers using means-end chain theory. Journal of Distribution Science, 4(2), 31-40.
Yang, H. C., Jeon, J. H., & Ju. Y. H. (2013). A study on the impact of perceived regulations for sales at super-supermarket and discount store on consumers’ shopping value and subjective well-being. Journal of Distribution Science, 11(11), 83-88.
Yang, H. C., & Ju. Y. H. (2012). The effect of college students' perceived marketing communication, value and consumption emotion on store loyalty in discount store. Journal of Distribution Science, 10(2), 19-28.
Yang, H. C., Moon, Y. H., & Khan, T. (2013). The impact of marketing and brand value on the long-term purchasing behavior regarding industrial goods.
Journal of Distribution Science, 11(5), 25-31.
Yang, H. C., & Oh, Y, S. (2015). Effects of value inclination of the producers on production intention of environment-friendly products: Mediation effects of perceived public certification and shared value.
Journal of Economics, Marketing and Management, 3(3), 24-34.
Yoo, B., & Donthu, N. (2001). Developing and validating a multidimensional consumer-based brand equity scale. Journal of Business Research, 52(1), 1-14.
Zeithaml, V. A. (1988). Consumer perceptions of price, quality, and value: A means-end model and synthesis of evidence. The Journal of Marketing, 52(3), 2-22.
